Shares in UK's Carpetright Slump on Biggest Investor's Rescue Bid

Britain's Carpetright is in talks with its largest shareholder Meditor over a possible takeover at a huge discount to its closing value on Wednesday, prompting a 50% crash in its shareprice, the International New York Times reported on a Reuters story. The floor coverings retailer, which trades from about 330 stores, has been struggling for years and fought off collapse last year by entering a Company Voluntary Arrangement (CVA) restructuring that closed shops and reduced rents. The retailer said on Thursday that Meditor, an investment management company which holds just under 30% of its equity, has indicated an offer price of 5 pence per share in cash. Shares in Carpetright closed Wednesday at 9.12 pence, valuing the business at 27.6 million pounds ($35.7 million). Read more